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Kakatiya Cement Sugar & Industries Ltd.

BSE: 500234 Sector: Industrials
NSE: KAKATCEM ISIN Code: INE437B01014
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OPEN 342.80
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VOLUME 4559
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P/E 9.30
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OPEN 342.80
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VOLUME 4559
52-Week high 448.90
52-Week low 203.00
P/E 9.30
Mkt Cap.(Rs cr) 267
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Kakatiya Cement Sugar & Industries Ltd. (KAKATCEM) - Director Report

Company director report

To

The Members

Your Directors have pleasure in presenting the 37th Annual Report together with theAudited Financial statements for the year ended 31st March 2016.

FINANCIAL RESULTS

The Financial Results for the year ended 31st March 2016 are summarized below:

(Rs. in Lacs)
Particulars 2015-16 2014-15
Income (Sales and other Income) 21641.40 15720.40
Profit before Depreciation Interest & Taxes 3388.66 2075.46
Depreciation 247.92 247.40
Interest 160.41 81.07
Provision for Taxation 774.72 349.46
Provision for Deferred Taxation (12.81) (13.54)
Profit after Taxation 2218.42 1411.00
Profit brought forward from Previous year 13078.82 12068.89
Less: Adjustment for deprecation on fixed assets - 7.34
APPROPRIATIONS
Transfer to General Reserve 221.84 141.10
Proposed Dividend 209.89 209.89
Corporate Tax on Dividend 42.72 42.72
Balance carried over to Balance Sheet 14822.78 13078.82

DIVIDEND

Your Directors are pleased to recommend for your consideration a Dividend of Rs. 2.70per equity share for the year ended 31.03.2016 as has been recommended in the earlieryears aggregating to Rs.209.89 lacs excluding Dividend Distribution Tax.

Despite relatively better performance in the year under review your Directors haverecommended dividend at the same rate considering the outflow on the capital expenditureproposed for Cement and Sugar Divisions which is estimated to cost around Rs. 15 crores.The company is also required to meet the challenges in honoring timely payments to thecane growers and ensure that the operational targets of the sugar division are met in timewithout any hindrance in the light of its seasonal character. The Company is also furtherrequired to conserve its resources and utilize the same for its Cement division to achievehigher level of operations targeted in the current year.

TRANSFER OF PROFITS TO RESERVES.

The company has transferred a sum of Rs. 221.84 lacs to reserves from out of thecurrent year's profits as against a sum of Rs. 141.10 lacs in the preceding year.

TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND (IEPF)

According to Section 205C of the Companies Act 2013 read with Investor Education andProtection Fund (Awareness and Protection of Investors) Rules 2001 the company hastransferred unclaimed dividend amounting to Rs. 88908/- to the Investor Education andProtection Fund established by the Central government during the year. The said transferis in respect of the financial year 2007-2008.

MATERIAL CHANGES AND COMMITMENTS

In terms of Section 134 (3) (l) of the Companies Act 2013 there are no materialchanges and commitments affecting the financial position of the company which haveoccurred between the end of the financial year of the company to which the financialstatements relate and the date of the Report.

PUBLIC DEPOSITS

The company has not accepted any deposits during the year under review and there wereno outstanding deposits as at the end of the year.

SIGNIFICANT AND MATERIAL ORDERS PASSWED BY THE REGULATORS / COURTS / TRIBUNALS

There are no significant and material orders passed by the Regulators or courts ortribunals impacting the going concern status and company's operations in future.

DEMISE OF SHRI P.VENKATESWARLU

It is with deep sense of sorrow that the Board informs the members that the founder ofthe Company Chief Promoter and Managing Director Shri P Venkateswarlu passed away on 11thJanuary 2016 at Hyderabad after a brief illness.

The Board places on record the services rendered by late Shri P Venkateswarlu for thegrowth and development of the Company particularly in the formative years of the Companyand noted that the determined efforts put in by late Shri P Venkateswarlu in diversifyingits range of enterprise by establishing sugar and power plants had put the corporateentity on a higher plane.

The Board opined that late Shri P Venkateswarlu had laid down high standards in theconduct of affairs of the Company with his insistence on transparency and accountability.He had meticulously combined business and philosophy and transformed the company into atransparent and committed enterprise embodied with virtues.

The Board feels that the passing away of Shri P.Venkateswarlu is an irreparable loss tothe Company.

DEMISE OF SHRI V.B.R.SURYAM

Shri V B R Suryam Independent Director who had served the Company for more than twodecades passed away on 12th March 2016 at Hyderabad after a brief illness.

He had provided valuable guidance in respect of various technical issues concerningcompany's cement plant. His participation and performance during the Board meetings hadcertainly enhanced the prestige and dignity of the Board. The Board opines that thepassing away of Shri V B R Suryam is a great loss to the Company.

ELEVATION OF POSITION:

Consequent to the passing away of Late Shri P Venkateswarlu Shri P Veeraiah has beenappointed as Chairman and Managing Director with effect from 3rd February 2016 at the sameremuneration which he was drawing in the capacity of Joint Managing Director. He will holdthis position till 30th November 2018.

The Board proposed enhancement of his remuneration suitably considering hiscontribution and dedication in discharging the additional responsibilities. All necessarymatters relating to his appointment and remuneration are being placed before the membersfor their approval.

RESIGNATION OF DIRECTORS

Shri J Siva Rama Prasad and Smt. J Shalini Directors of the company have resigned fromtheir directorship with effect from 17th May 2016. The Board places on record itsappreciation for the services rendered by Shri J Siva Rama Prasad and Smt. J Shaliniduring their tenure.

Appointment of Additional Director.

Smt. M Vara Lakshmi has been inducted as an Additional Director under Section 161 ofthe companies Act 2013 in compliance with Regulation 17 (1) (a) SEBI (Listing Obligationsand Disclosure Requirements) Regulations 2015. This appointment is made consequent to theresignation of Smt. J Shalini necessitating induction of another woman director. Smt. MVara Lakshmi has rich experience in Accounts and Banking functions.

She holds the office up to the date of the forthcoming Annual General Meeting and beingeligible for appointment as Director a Resolution for appointment of Smt. M Vara Lakshmiis being placed before the members for their approval at the Annual General Meeting.

DIRECTORS RETIRING BY ROTATION

In accordance with the provisions of the Companies Act 2013 Shri J S Rao Directorretires by rotation at the ensuing Annual General Meeting and being eligible offershimself for re-appointment.

The brief profile(s) of the director(s) seeking appointment / re-appointment at theAnnual general Meeting are presented in the Annual Report.

DEMATERIALISATION

As on 31st March 2016 7318265 shares were dematerialised with National SecuritiesDepository Limited and Central Depository Services Limited which constitutes 94.14% of theshares of the company. Your Directors would request all the members who have not yetconverted their holdings into dematerialised form to do so thereby facilitating tradingof their shares without any difficulty.

PERFORMANCE OF THE YEAR UNDER REVIEW

Cement Division:

During the year under review the Cement Division has produced 237027 MT as against260685 MT in the year ago period thereby registering a minor decline of 5.77% in volume.The Cement Division has earned Profit Before Tax (PBT) of Rs. 9.31 crores in comparisonwith Rs. 16.55 crores in the previous year.

Sugar Division:

The Sugar Division crushed 338582 MT of sugarcane for the year under review asagainst 231086 MT in the previous year. There is improvement in the recovery rate at10.80% in comparison with 10.48% in the previous year. The Company could substantiallyreduce the losses in the Sugar Division due to improvement in operations and betterrealization prices. The Division's loss is reduced to Rs. 2.16 crores in 2015-2016 onaccount of the factors stated above. This is in comparison with a loss of Rs. 19.69 croresin the previous year.

Power Division:

In the year under review the Power Division has generated 67020044 KWH as against91976742 KWH of power in the preceding year thereby recording a decline of 27% due tovarious administrative issues with the Government of Telangana. The Division has earnedProfit before tax (PBT) of Rs. 22.66 crores as against Rs. 20.63 Crores in the previousyear thus notching an increase of 9.84%.

Current Year Outlook:

Cement Division:

Various developmental activities that have been undertaken by the Telangana State offerimmense opportunities to the Company in shoring up the operational performance of itsCement Division on a sustainable basis and this can be seen on the back of fresh demandfor housing urban and infrastructure development.

With bifurcation of the State of Andhra Pradesh the Company clearly visualizes verygood potential and good prospects for its Cement Division in the context of building up anew capital city for Andhra Pradesh.

Considering various factors your company has set a target for its production at285120 MTs in the current year.

Sugar Division:

Though the Company endeavors to retain its record performance in sugar cane crushingachieved in the year under review considering the water scarcity and other relatedproblems your company has set a target of 270000 MTs in the current year. The generalrecovery of sugar industry will also be a positive factor for the Company. The Sugar Canecrop in our factory zone is expected to be stable as the company has obtained the orderfrom the commissioner of sugar cane allotting villages for cultivation of sugar cane andas such the company does not envisage any hindrances to its crushing operations.

Power Division:

The Company will spare no effort to make best endeavors in achieving enhanced level ofpower generation. However since it is greatly related to government policy and to variousissues that are yet to be settled by the Courts lot of uncertainty still remains as asour factor.

INSURANCE:

All the properties of the Company including its buildings Plant and Machinery andStocks wherever required have been adequately insured.

Disclosures under the Companies Act 2013

I) EXTRACT OF THE ANNUAL RETURN:

The extract of the Annual Return as per provisions of section 92 of the Companies Act2013 and Rule 12 of Companies (Management and Administration) Rules 2014 in form MGT 9 isannexed to this Report.

II) BOARD MEETINGS:

During the year under review 5 (Five) Board Meetings were held. The details of theBoard Meetings and the attendance of the Directors are furnished in the CorporateGovernance Report.

III) Changes in Share Capital

There is no change in the Share Capital during the year under review.

IV) Audit Committee:

The terms reference of the Audit Committee encompasses the requirements of Section 177of Companies Act 2013 and Regulation 18 of the Listing regulations and inter aliaincludes:

a. To hold periodic discussions with the Statutory Auditors and Internal Auditors ofthe Company concerning the financial reports of the company and internal control systems.Scope of audit and observations of the Auditors / Internal Auditors and overseeing thatthe Company's financial reporting process and the disclosure of its financial informationto ensure that the financial statements are correct sufficient and credible;

b. To call for the comments of the auditors about internal control systems scope ofaudit including the observations of the auditors and review of financial statementsbefore their submission to the Board and also to discuss any related issues with theinternal and statutory auditors and the management of the company;

c. To evaluate internal financial controls and risk management systems;

d. To inter-alia review Management Discussion and Analysis of financial condition andresults of operations Statement of Significant Related Party transactions submitted bythe management before submission to the Board;

e. To investigate into any matter in relation to the items referred to it by the Boardand for this purpose obtain professional advice from external sources;

f. To make recommendations to the Board on any matter relating to the financialmanagement of the company including the Audit Report;

g. To approve Related Party Transactions.

h. Reviewing the functioning of the Whistle Blower mechanism;

i. Recommending the appointment reappointment and if required the replacement orremoval of the statutory auditors and fixation of audit fee and approval for payment forany other services.

More details of the Audit Committee are furnished in the Corporate Governance Report.

V) REMUNERATION POLICY:

The Company follows a policy on remuneration of Directors and Senior Managementpersonnel. The Policy is approved by the Nomination and Remuneration Committee and theBoard.

More details on the same are given in the Corporate Governance Report.

Nomination and Remuneration Committee:

Scope

The main scope of the committee is to determine and recommend to the Board the personsto be appointed/re-appointed as Executive Directors/Non-Executive Directors.

The committee also determines and recommends to the Board the financial component. Thecompensation of the Executive Directors comprises of fixed component and also commissionbased on the profits earned by the company.

The compensation is determined based on the levels of responsibility and the parametersprevailing in the industry. The Executive Directors are not paid any sitting fee for Board/ Committee meetings attended by them. The Non-Executive Directors are paid sitting feefor Board / Committee Meetings attended by them and no other payment is made to them.

The Nomination and Remuneration Committee examines and devises a policy on Boarddiversity and to formulate criteria for determining qualifications experience positiveattributes and independence. It also recommends to the Board the factors to be reckonedwith in determining the remuneration payable to the Directors.

More details of the committee are furnished in the Corporate Governance Report.

VI) RELATED PARTY TRANSACTIONS

Particulars of contracts / arrangements entered into by the company with RelatedParties referred to in Section 188 (1) of the Companies Act 2013 have been provided inForm No.AOC-2 pursuant to clause (b) of sub Section (3) of Section 134 of the Act and Rule8(2) of the Companies (Accounts) Rules 2014 and the same are annexed to this Report.

VII) STATEMENT OF PARTIULARS OF APPOINTMENT AND REMUNERATION OF THE MANAGERIALPERSONNEL:

The statement of particulars of Appointment and Remuneration of Managerial Personnel asper Section 197(12) of the Companies Act 2013 read with Rule 5 of Companies (Appointmentand Remuneration of Managerial Personnel) Rules 2014 is annexed to this Report.

VIII) STATEMENT OF DECLARATION FURNISHED BY INDEPENDENT DIRECTORS UNDER SECTION 149(6)OF THE COMPANIES ACT 2013:

The independent Directors have submitted the declaration of independence as requiredpursuant to section 149(7) of the Companies Act 2013 stating that they meet the criteriaof independence as provided in section 149(6) of the Companies Act 2013.

IX) CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS ANDOUTGO

The information relating to conservation of energy technology absorption and foreignexchange outgo stipulated under Section 134(3)(m) of the Companies Act 2013 read withRule 8 of the Companies (Accounts) Rules 2014 is annexed to this Report.

COMMITTEE MEETINGS:

The Composition and other details of the Nomination and Remuneration CommitteeStakeholders Relationship Committee and Risk Management Committee are furnished in theCorporate Governance Report. The other details in respect of Audit Committee and CorporateSocial Responsibility Committee are furnished in the Corporate Governance Report.

DIRECTORS' RESPONSIBILITY STATEMENT:

Pursuant to the requirement under section 134 (3) (c) and 134 (5) of the Companies Act2013 with respect to the Director's Responsibility statement the Board of Directors ofthe Company hereby confirm:

a. That in the preparation of annual accounts the applicable accounting standards havebeen followed and that there were no material departures therefrom.

b. That the Directors have selected such accounting policies and applied themconsistently and made judgments and estimates that are reasonable and prudent so as togive a true and fair view of the state of affairs of the Company as on 31st March 2016and of Profit of the Company for that period.

c. That the Directors have taken proper and sufficient care for maintenance of adequateaccounting records in accordance with the provisions of the Companies Act 2013 forsafeguarding the assets of the Company and for preventing and detecting fraud and otherirregularities.

d. That the Directors have prepared the Annual Accounts for the Financial Year ended31st March 2016 on a going concern basis.

e. That the Directors had laid down internal financial controls to be followed by thecompany and that such internal financial controls are adequate and were operatingeffectively.

f. That the Directors had devised proper systems to ensure compliance with theprovisions of all applicable laws and that such systems were adequate and operatingeffectively.

EVALUATION OF THE BOARD'S PERFORMANCE:

In compliance with the provisions of Section 134 (3) (p) of the Companies Act 2013and Regulation 25 of SEBI (Listing obligations and Disclosure Requirements) Regulations2015 the performance evaluation of the Board was carried out during the year underreview.

More details on the same are furnished in the Corporate Governance Report.

AUDITORS:

M/s. Anandam & Company Chartered Accountants Secunderabad have been the Auditorsof the Company and they retire at the conclusion of this Annual General Meeting and areeligible for re-appointment. There are no qualifications reservations or adverse remarksmade by M/s. M. Anandam & Co. Chartered Accountants Secunderabad Statutory Auditorsin their Report for the Financial Year ended 31st March 2016.

As per section 148 of the companies Act 2013 read with the Companies ( Cost Recordsand Audit) Rules Cost records are required to be audited. Based on the recommendation ofAudit Committee your Board has appointed M/s. Narasimha Murthy Cost AccountantsHyderabad as Cost Auditors for the current year and necessary Resolution for ratificationof their remuneration is being placed before the shareholders for their approval in termsof Rule 14 (a) (ii) of the Companies (Audit and Auditors) Rules 2014.

The Board has appointed Smt. Manjula Aleti Company Secretary in whole-time Practice tocarry out Secretarial Audit under the provisions of Section 204 of the Companies Act 2013read with the Companies (Appointment and Remuneration of the Managerial Personnel) Rules2014 for the financial year 2015-2016.

The Secretarial Audit Report issued by Smt. Manjula Aleti practicing Company Secretaryin Form-MR 3 is annexed to this Report.

The Secretarial Audit Report does not contain any qualifications reservations oradverse remarks.

VIGIL MECHANISM AND WHISTLE BLOWING POLICY:

The Company has adopted a Whistle Blower Policy establishing a formal mechanism to theDirectors and employees to report concerns about unethical behavior actual or suspectedfraud or violation of code of conduct and ethics. It also provides for adequate safeguardsagainst the victimization of employees who avail of the mechanism and also envisagesdirect access to the Chairperson of the Audit Committee in exceptional cases. It isaffirmed that no personnel of the Company has been denied access to the Audit Committee.

The whistle blower policy aims at conduct of the affairs in a fair and transparentmanner by adopting highest standards of professionalism honesty integrity and ethicalbehavior. The policy on vigil mechanism and whistle blower policy may be accessed on thecompany's website:www.kakatiyacements.com.

Risk Management Committee:

The objective behind constitution of the Risk Management Committee is to identify riskdevelop appropriate risk mitigation strategies and to monitor activities of theorganization and also to highlight the systematic study safeguards against threats lossand damages of brand reputation and assets of the company. Improvement of level ofawareness and appreciating and managing material business risks are also the objectives ofthe Risk Management Committee.

The Committee besides identifying the risk factors is also expected to manage andmonitor risk and ensure that proper internal systems and processes are in place.

More details of the committee are furnished in the Corporate Governance Report.

ENVIRONMENTAL PROTECTION:

The Company has been making endeavors to protect the Environment from the evil effectsof pollution from time to time.

Planting of saplings and seedlings in and around the factories and colonies is beingdone on a continuous basis so as to develop green belt around the plant to improve theenvironment.

MANAGEMENT DISCUSSION AND ANALYSIS 2016

a) Industry Structure and Development:

Cement is a cyclical commodity with a high correlation to Gross Domestic Product. TheIndian housing sector is the biggest demand driver of Cement accounting for about 64% oftotal consumption. The other major consumers of Cement include infrastructure 17%commercial construction 13% and industrial construction 6%.

Low capacity utilization coupled with weak prices and increasing input costs have allsignificantly impacted the performance of Cement Industry in India. It is not an uncommonsight to find some Indian producers who had a record of subdued operating profits and highdebt service obligations deferring their expansion plans.

With improved demand resulting from infrastructure and housing sectors coupled withlimited capacity additions the Cement Capacity utilization on a pan India basis isexpected to gradually improve in the Current Year.

The aggressive stance adopted by the Telangana Government in pushing up thedevelopmental activities particularly that of Housing and Infrastructure will boost up thedemand potential of the Company in view of the fact that the Company's Cement Plant islocated in Telangana State.

The Company envisages a significant upswing in demand for its product given the factthat construction of new capital for Andhra Pradesh will throw up lot of opportunities forthe Cement Industry as the Company's Plant is quite proximate to the Capital Region ofAndhra Pradesh. The prospects are expected to be better than other plants located outsidethe State of Andhra Pradesh.

The track record established by your Company for a period of more than three decadeswith regard to its quality and post delivery service will play as a major factor intargeting bulk orders from Telangana and Andhra Pradesh.

As a result of the above factors the Company envisages that the demand for its productis exepted to increase in the year under review and also in the years to come.

Good rainfall and availability of proper irrigation facilities will determine thefortunes of sugar industry it being an agro-based industry.

The Company has secured necessary approval from the state government for its crushingoperations for a period of five years and therefore it does not envisage any difficultyin matters pertaining to crushing of sugar cane. Availability of sufficient water is aconcern and the company will make necessary endeavors in this regard.

As has been mentioned elsewhere while the Company is confident of generating power ona sustaining basis certain sour factors remain unresolved such as revision of powertariff and other connected matters. All efforts are being made to clear the uncertaintiesand to achieve higher generation of power in the year under review.

b) Opportunities and Threats:

As stated elsewhere in this Report the huge construction and infrastructure activitythat is expected to take place in Telangana and Andhra Pradesh might provide significantopportunities to the Company in shoring up business operations of its Cement Division. Thebenefits may manifest in the current year or in the years to come.

On a similar note the impetus given to the Housing and infrastructure sectors by theGovernment of India will also act as a positive factor for the Company's Cement plant andthereby aid its growth and development.

The Company will make every effort to overcome the bottlenecks in achieving thetargeted operations in Sugar and Power Divisions and is confident of attaining theoperational targets.

c) Segment or product-wise performance:

Segment-wise and product-wise performance has been furnished elsewhere in this Report.

d) Outlook:

Division-wise outlook has been furnished elsewhere in this Report.

e) Risks and concerns:

The Cement Sugar and Power industries being core industries there is no risk ofproduct obsolescence or steep fall in demand by way of product substitution or otherwiseand therefore your Directors do not foresee any major risks and concerns in the nearfuture except as discussed elsewhere in this Report.

f) Internal control systems and their adequacy:

As stated elsewhere in this Report the Company has adequate internal control systemsand the Reports of Internal Auditors are being placed before the Audit Committee andcorrective measures if any are being taken care of by the Company. The Chief FinancialOfficer will monitor the Internal audit Reports and brief the Audit Committee in case anydeficiency in the system is noticed.

g) Financial Performance with respect to operational performance:

This has been discussed elsewhere in this Report.

h) Human Resource Development and Industrial Relations:

The company believes that the quality of its employees is the key to success and istherefore committed to provide necessary human resource development and trainingopportunities to equip employees with additional skills to enable them to adapt tocontemporary technological advancements.

Industrial Relations during the year continued to be cordial through effectivecommunication meetings and negotiations with the work force.

The Company's strength consists of 510 employees directly and indirectly as on 31stMarch 2016.

i) Corporate Social Responsibility:

In compliance with Section 134(3) (a) of the Companies Act 2013 read with theCompanies Corporate Social Responsibility (CSR) policy Rules 2014 the company hasestablished CSR Committee comprising of Shri K Venkat Rao as Chairperson Shri P Veeraiahand Shri J S Rao as members. The committee is responsible for formulating and monitoringthe CSR policy of the Company.

The Annual Report of CSR Activities forms part of this Report.

PARTICULRS OF LOANS GUARANTEES OR INVESTMENTS UNDER SECTION 186 OF THE COMPANIES ACT2013.

There are no loans guarantees or investments made or given under Section 186 of theCompanies Act 2013.

CAUTIONARY STATEMENT

Statements in this "Management Discussion & Analysis" may be consideredto be "forward looking statements" within the meaning of applicable securitiesLaws or Regulations. Actual results could differ materially from those expressed orimplied. Important factors that could make a difference to the Company's operationsinclude global and Indian demand-supply conditions increased installed capacity finishedgoods prices raw material availability and prices cyclical demand and pricing in theCompany's markets changes in Government Regulations tax regimes besides other factorssuch as litigations and labour negotiations.

ACKNOWLEDGEMENT

Your Directors take this opportunity to place on record their sincere thanks to theBanks the Director of Sugar and Cane Commissioner the Transco Authorities of Telanganaand Andhra Pradesh States and to various departments of the Central Government and theState Governments of Telangana and Andhra Pradesh for their support to the Industry.

The Directors thank the entire net work of dealers who have enabled the Company toachieve the desired volumes despite the market being sluggish for a considerable periodduring the year under review.

The Directors record their appreciation for committed support to the Company by all theemployees at all levels throughout the year under reference.

The Directors record their gratitude to all the Share holders who have been reposingconfidence in the Company and its Management.

for Kakatiya Cement Sugar & Industries Limited By order of the Board
P Veeraiah
Place: Hyderabad Chairman and Managing Director
Date : 12.08.2016 DIN : 00276769

ANNEXURE TO DIRECTORS' REPORT:

Particulars required under the Companies (Disclosure of Particulars in the Report ofBoard of Directors) Rules 1988.

A. CONSERVATION OF ENERGY
a) Energy Conservation Measures adopted : NIL
b) Additional Investments and Proposal for : NIL
reduction of Consumption of energy
c) Impact of the above measures : NIL
d) Total Energy Consumption and Energy Consumption per unit of production : FORM "A" Enclosed.

B. TECHNOLOGY ABSORPTION

Efforts made in Technology Absorption FORM "B" Enclosed

C. FOREIGN EXCHANGE EARNINGS AND OUTGO

a) Activities relating to exports initiatives taken to increase exports development of new export market for product & services and export plans : Exports are not contemplated at present.
Total foreign exchange used : Nil
Total foreign exchange earned : Nil

FORM-A

Form for Disclosure of particulars with respect to Conservation of Energy

CURRENT YEAR 2015-16

PREVIOUS YEAR 2014-15
CEMENT SUGAR POWER CEMENT SUGAR POWER
A. POWER & FUEL
CONSUMPTION
1. ELECTRICITY
(a) Purchased (KWH) 23842427 9696992 -- 26846031 7734908 --
Total Amount (Rs.) 217039944 112669349 -- 227856868 62343358 --
Rate per Unit (Rs.) 9.10 11.619 -- 8.49 8.06 --
(b) OWN GENERATION
Through Diesel
Generators (Units) 30550 -- -- 12662 -- --
Total Amount (Rs.) 454410 -- -- 236400 -- --
Cost per Unit (Rs.) 14.87 -- -- 18.67 -- --
2. FUEL
(a) COAL
Quantity (MT) 45607.64 -- -- 47814 -- --
Total Cost (Rs.) 201011.264 -- -- 224426.934 -- --
Average Rate (Rs.) 4407.40 -- -- 4693.75 -- --
(b) Bagasse/Steam
Quantity (MT) 142853 99028 -- 98401 66141
Total Cost (Rs.) 56284082 126181478 -- 38277989 80264088
Average Rate (Rs.) 394.00 1274.20 -- 389.00 1213.53
B. CONSUMPTION PER UNIT OF PRODUCTION
1. Electricity (KWH)
Cement (MT) 101.039 -- -- 100.60 -- --
Sugar (KGS) -- -- -- --
Power (KWH) -- -- -- --
2. Coal (MT) (Per tonne of clinker) 0.204 0.200

FORM - B

Form for disclosure of particulars with respect to Absorption Research &Development (R & D):

1. Specific areas in which R & D carried out by the Company There is no separate Research and Development Wing as the scale of Company's operations are relatively small. However the Company has fairly good laboratory with adequate testing facility to ensure quality of various inputs and also finished products. Besides the Company continuously endeavours to improve production process and product quality and encourages the technicians and workers to innovate.
2. Benefits derived as a result of the above R & D
3. Future plan of action
4. Expenditure on R & D
A. Capital
B. Recurring
C. Total
D. Total R & D expenditure as a Percentage of total turnover

TECHNOLOGY ABSORPTION ADAPTATION & INNOVATION - NOT APPLICABLE

For and behalf of the Board
P. Veeraiah
Place : Hyderabad Chairman & Managing Director
Date : 12th August 2016 DIN:00276769